Two Category II Alternative Investment Funds (AIFs), managed by Spark Capital Investment Management and Daksham Growth Ventures, have announced their respective first closes, with investment strategies targeting businesses at different stages of growth.
Spark Capital’s second Midas fund has secured capital commitments of ₹1,649 crore, while Daksham Growth Ventures’ maiden consumer-focused fund has announced a first close of around ₹125 crore.
Spark Capital’s Midas Fund II targets ₹2,000 crore
Spark Capital Investment Management (SCIM), the asset management business of Spark Capital, announced that its second late-stage growth private equity fund, Spark Midas Investment Fund II, completed its first close on November 2, securing capital commitments of ₹1,649 crore from ultra-high-net-worth individuals (UHNIs), family offices and corporates.
The fund’s original target corpus of ₹1,500 crore was fully subscribed within approximately eight weeks of its launch. Following investor interest, the investment manager revised its private placement memorandum (PPM), increasing the potential fund size to ₹2,000 crore, including a ₹1,000-crore greenshoe option.
The fund follows a sector-agnostic investment strategy, focusing on profitable and well-governed companies that are typically 12-36 months away from a potential liquidity event, such as an initial public offering (IPO), strategic sale or secondary sale.
It will target companies with revenues exceeding ₹250 crore and positive EBITDA. Its investment themes include consumer premiumisation, financial inclusion, export-led manufacturing and businesses benefiting from government policy-led growth.
The fund may also invest up to 25% of its corpus in listed small- and mid-cap companies. Its tenure is five years from the first close, with an extension option of up to two years.
Daksham Growth Ventures’ maiden fund targets ₹300 crore
Daksham Growth Ventures, the investment platform of wealth management group Daksham Capital, announced the first close of its maiden Category II AIF, DGV Fund I, at around ₹125 crore.
The fund has a target corpus of ₹150 crore and a greenshoe option of another ₹150 crore, taking its potential size to ₹300 crore. The first close was achieved shortly after it received SEBI registration in October 2026.
The fund has secured capital from family offices, HNI and UHNI families and entrepreneurs, according to the company.
DGV Fund I will primarily invest in Pre-Series A and Series A companies that have demonstrated product-market fit and established unit economics.
It plans to write cheques ranging from ₹5 crore to ₹20 crore, targeting businesses with annual recurring revenue (ARR) of ₹25 crore to ₹75 crore and the potential to scale revenues to ₹300 crore-₹500 crore.
Its investment focus spans direct-to-consumer (D2C) brands, consumer enablers, B2B2C businesses, supply-chain companies and consumer businesses using artificial intelligence (AI).
Shivam Diwan, Co-Founder and Managing Partner of Daksham Growth Ventures, will lead the fund. The company said it will also work with portfolio businesses on governance, financial reporting, leadership development and distribution expansion.
Both funds are structured as Category II AIFs under SEBI’s Alternative Investment Fund Regulations, but follow different investment approaches, with Spark Midas Fund II focusing on established businesses approaching potential exits and Daksham Growth Ventures targeting consumer businesses at an earlier stage of growth.